New Public Management in Charlotte, North Carolins: A Case Study of Managed Competition

Abstract

The practice and study of public administration has long included questions of efficiency, effectiveness, and economy. In the literature of the last decade, the New Public Management (NPM) movement argues that government should be run like a business and that entrepreneurial-based techniques should be utilized in an effort to enhance government performance. The normative perspective, however, raises counter ideas. The primary purpose of this research is to examine the impact of managed competition, a NPM technique, on four primary study areas including (1) democratic governance, (2) the politics administration dichotomy, (3) organizational effects, and (4) accountability. The study findings indicate that the economic model has had a significant impact on the four study areas to varying degrees. The theoretical propositions posed in the study center around principal-agent theory, public choice theory, and the market model and aid in reconciling the NPM perspective with normative considerations applicable to local government practice. Examining managed competition allows us to see how Charlotte has evolved in its attempt to meet demands from both perspectives.